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Post Chapter 7 discharge question...Should accounts included in discharge....

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Whew
Valued Member

Post Chapter 7 discharge question...Should accounts included in discharge....


Hello.  My husband and I filed a chapter 7 that has been discharged.  In lieu of updating accounts on a CR stating "account included in bankruptcy"...should accounts included in the discharge be removed from credit reports altogether?

 

Thank you!

Message 1 of 4
3 REPLIES 3
gogocred
Established Member

Re: Post Chapter 7 discharge question...Should accounts included in discharge....

Bankruptcy discharge does not remove accounts; it removes a debtor's liability for those accounts.

 

All accounts on a filer's CR should read "included in bankruptcy" after filing and discharge. The accounts will fall off approximately 7 years after the first date of delinquency for each account. Hope this helps, but feel free to peruse this forum for more info.

 

Good luck!

Message 2 of 4
kjm79
Valued Contributor

Re: Post Chapter 7 discharge question...Should accounts included in discharge....

The accounts should all be upated to state "included in bankruptcy".  Should report zero balances and should not report any late payments AFTER the date of filling your bankruptcy.  Any lates prior to the filing of your bk can continue to report.  As jogo said, the accounts should start falling off approx 7 years from the date of your first missed payment.  Wait a while and then attempt to write some goodwill letters and see if you can get some of the accounts removed entirely. 


CH 7 Filed 7/27/15 Discharged 11/16/15
Starting Score: EQ 620 TU 568 EX 593
Current Score (07/13/16): EQ 674 TU 649 EX 674 (FICO's 08)
Cap1 QS ($5350) (Combined QS and QS1) Discover It ($4100) MilStar ($8,600) Fingerhut ($800)
Off to the garden 05/01/16
Message 3 of 4
Anonymous
Not applicable

Re: Post Chapter 7 discharge question...Should accounts included in discharge....

Here's a helpful link which clarifies how long accounts will continue to report:

 

http://www.myfico.com/CreditEducation/Questions/Negative-Items-On-Credit-Report.aspx 

__________

 

Credit Q&A

How long will negative information remain on my credit report?

 

It depends on the type of negative information. Here's the basic breakdown of how long different types of negative information will remain on your credit report:

  • Late payments: 7 years
  • Bankruptcies: 7 years for completed Chapter 13 bankruptcies and 10 years for Chapter 7 bankruptcies.
  • Foreclosures: 7 years
  • Collections: Generally, about 7 years, depending on the age of the debt being collected.
  • Public Record: Generally 7 years, although unpaid tax liens can remain indefinitely.

_________

 

This means that a collection account will age off at approximately 7 years.

If your account was not a collection account, it will age off approximately 10 years after the last activity.  If it had a late payment - that late payment will age off after 7 years.  That means that the account will continue to report for several years after the lates have aged off - this is great! 

 

So, for example, in my BK I had a CapOne card with two 30 day lates.  The 30 day lates aged off (7 years), but my CapOne continues to report (10 years) - it shows as a positive account and adds to my AAofA.

 

Hope that's helpful!

Message 4 of 4
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